Gold prices come under pressure with the strong dollar being likelyto reduce demand for yellow metal. The metal is likely to remain under pressurebefore the Fed meeting this month end. Traders eye on FOMC meeting, what the outcomewill be? IF the US Fed further cuts its bond purchasing program, the journey ofthe gold moves towards the bear court. Todays unemployment and home sales datacan partly reveal the forward actions of Fed.Might be a big day for US dollar and gold. After the data published, wemight see the short term trend for gold. Right now gold is trading in its crucialweekly support zone at the level of $1,230. Yesterday, it was unable to break theresistance zone at the level of $1,245 and it started falling further. Attached in the hourly chart, oscillators sign a oversoldposition, resulted in a pullback. Prices are trading below 21DEMA, multi-highs at thelevels of $1,243-$1,244 acting as strong resistance zone. We can observe thetrading band at $1,230-$1,244. Support- $1,230, $1,226, $1,220. Resistance- $1,240, $1,244, $1,255. In the daily charts oscillators are in a mixed bag, whereasstochastic in a extremely overbought zone. If prices break the previous supportzone of $1,234, the immediate support exist at the level of $1,230. Trading day on Thursday has started just now, prices are trading atthe level of $1,233.5, having broken the weekly support zone, the 38.2retracementlevel is actingas support. Intra day recommendation- Buy with sl at $1,230, targets are at $1,234 $1,240, cmp is $1,232. Read more: https://instaforex/forex_analysis/40605/
Posted on: Thu, 23 Jan 2014 09:41:30 +0000
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